How to buy stocks? What to look out for.

 A Stock, also known as an equity, is a security that represents a fractional share of ownership in a company. When you buy shares in a company, you become a shareholder and the small part you own is called a share.

Stocks can be purchased through banks and independent organisations. If the stocks are to be opened for the purpose of buying and selling, an investment account must be opened at the agreed bank, and after the investment account is opened, stocks can be purchased via mobile or internet banking. If independent brokerage houses are to be selected to buy stocks, the brokerage house must first be determined, then a connection is established from the website of this institution and a user account is opened. The amount to be invested is transferred to the opened account. Stocks are purchased by using the necessary tools on the website or mobile interface of the intermediary institution. After buying shares, there are two main ways in which shareholders can earn a return on their investment: capital gains and dividends. Capital gains are the profit you make when you sell a share. This happens when you sell it for more than you paid for it. Dividends are regular payments to shareholders. Each company can set its own dividend programme, but quarterly payments are the most common. Dividends give investors the possibility to receive income without having to sell their shares, even in years when the share price falls. For this reason, dividend-paying stocks are often very attractive for investors in or near retirement. Besides these, there are three important points you should pay attention to: If you are not going to trade frequently, the safest way is to invest for the long term, because long-term investments often outperform the market over a limited period of time. Even if you start with a small investment, having a variety of investments can protect you against risks and fluctuations. Choose tax-advantaged investments and, in line with our long-term thinking advice, hold your investments for as long as possible, aiming to benefit from long-term capital gains tax treatment where possible. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!